I’d do it differently. I would make student loans dischargable by bankruptcy, but they would not be Federally insured. Make the schools loan the money to the students.

Effect would be that banks would leave the market except to loan to students with high GPAs pursuing STEM courses. They wouldn’t loan money to students pursuing Art History or other wastes of time. The schools wouldn’t loan money to people who might not repay it. Then the schools would be caught in a trap of overcapacity with too little money coming in.

Final outcome would be a lot of lib professors would be asked to find productive work somewhere else while tuition rates would come down to meet actual demand. Federal student loans and tuition subsidies just jack up the prices. Pull the price supports and the whole rotten edifice collapses.